Needham analyst Michael Matson has maintained their bullish stance on LIVN stock, giving a Buy rating on March 9.
Michael Matson has given his Buy rating due to a combination of factors related to LivaNova’s financial situation and recent legal developments. The Italian Supreme Court’s decision, which confirmed LivaNova’s liability for SNIA obligations, resulted in a lower-than-expected financial liability for the company. Initially, LivaNova anticipated a liability of approximately $493 million, but the court’s ruling reduced this amount to around $363 million, easing the financial burden on the company.
Despite this liability, LivaNova’s strong cash position, with $429 million in cash and $295 million in restricted cash as of the end of 2024, provides confidence in its ability to manage the financial impact. Additionally, the reduction in liability is expected to decrease the company’s interest expenses, which will positively affect its earnings per share. These factors, along with the market’s prior anticipation of the liability, suggest that the risks are already factored into the stock price, supporting the Buy rating.
In another report released on March 9, Goldman Sachs also maintained a Buy rating on the stock with a $55.00 price target.